June 30th 2019 – Updated Negative Lists regarding foreign…
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June 30th 2019 - Updated Negative Lists regarding foreign investment in China.
On June 30th the National Development and Reform Commission and the Ministry of Commerce published two updated negative lists regarding foreign investment in China.
The negative lists show the sectors in which foreign investment is restrained. One list is applicable to free trade zones and the other one is applicable to the rest of the country. The reduction of the “negative” list items shows that China is promoting a greater market for foreigner investors and at the same time also that less and less industries are restricted.
The list applicable to the FTZ has restricted business for 8 industries thus reducing the total industry count from 45 to 37.
Limitations for foreign investments have been removed in the following sectors:
- Fishing in geographic aquatic areas under China’s jurisdiction and inland waters;
- Exploration and mining of molybdenum, tin, antimony and fluorite;
- Publication printing;
- Xuan paper and Chinese ink ingot Production;
- Construction and operation of pipeline networks for gas and heat in cities with the population over 500,000 persons;
- Domestic shipping agency;
- Development of wildlife resources originating in China under State Protection;
- Construction and operation of cinemas.
The list applicable in the rest of the country has been reduced from 48 to 40 industries.
The businesses sectors removed from the negative list are:
- Exploration and exploitation of oil and natural gas;
- Exploration and mining of molybdenum, tin, antimony and fluorite;
- Production of Xuan paper and Chinese ink ingot;
- Construction and operation of pipeline networks for gas and heat in cities with the population over 500,000 persons;
- Domestic shipping agencies;
- Development of wildlife resources originating in China under State protection;
- Construction and operation of cinemas;
- Performance brokers.
New updated negative lists:
Special Administrative Measures for Access of Foreign Investments (Negative List) (2019 Edition)
https://docs.wixstatic.com/ugd/02e245_6700578467574b92953cadc36e625bc2.pdf
Special Administrative Measures (Negative List) for Foreign Investment Access in Pilot Free Trade Zones (2019 Edition)
https://docs.wixstatic.com/ugd/02e245_fd0b85b2ddd7451881d7eb999222021f.pdf